Fix Your Memory Module
 
Home
News
Products
Shop
Memory
Corporate
Contact
 

News
Industry News
Publications
CST News
Help/Support
Member Area
Tester Brochure
Demo Library
Software
Tester FAQs

biology medicine news product technology definition

Friday, December 15, 2017
Memory Industry News
Email ArticlePrinter Format PreviousNext

Foxconn has new partners to strengthen its bid on Toshiba


Friday, June 16, 2017

Apple Inc and computing giant Dell Inc will join a Foxconn-led consortium bidding for Toshiba Corp's highly prized chip unit, the CEO of the world's largest contract electronics manufacturer told Reuters on Monday.

Terry Gou, Foxconn's founder and chief executive, said U.S.-based Kingston Technology Co, a maker of memory products, would also be part of the bidding group, while Amazon.com Inc was close to joining.

The Taiwanese firm is also in discussions with Alphabet Inc's Google, Microsoft Corp and Cisco Systems Inc about their participation in the bid, he said.

He declined to say how much Apple and other U.S. firms planned to invest.

"I can tell you Apple is in for sure," Gou said in an interview, adding that its participation had been approved by Chief Executive Tim Cook and Apple's board of directors.

Asked about the total size of the Foxconn-led offer, he declined to give a figure, saying only that it was "very close" to other bids.

Toshiba is rushing to find a buyer for the world's second-largest producer of NAND chips, which it values at $18 billion or more, to cover billions of dollars in cost overruns at its now-bankrupt U.S. nuclear business Westinghouse Electric Corp.

Foxconn, however, has not been seen as a frontrunner for the unit due to its deep ties with China, where it manufactures much of its products. The Japanese government has said it will block any deal that would risk the transfer of key chip technology out of the country.

Gou said that the Foxconn-led consortium contained no Chinese capital and had the advantage of not inviting as much antitrust scrutiny as other suitors. He also played down potential opposition from the Japanese government to the bid.

"The key is that we are all customers, we are users," he said.

Foxconn, formally known as Hon Hai Precision Industry Co, and its Japanese unit Sharp Corp would have a combined stake of not more than 40 percent, he added.

Representatives for Apple and the other U.S. firms named by Gou could not be immediately reached for comment outside of regular business hours. Sharp declined to comment.

Separately a source familiar with the matter said Japanese telecoms and internet giant SoftBank Group Corp was also part of the Foxconn-led consortium.

SoftBank declined to comment. Toshiba was not immediately available for comment.

Gou's revelations of the Foxconn-led bid come as uncertainty spikes over the make-up of the groups competing in the hotly contest auction just days before Toshiba is due to announce a preferred bidder.

Western Digital Corp plans to raise its offer for Toshiba's semiconductor unit, a person familiar with the matter told Reuters over the weekend, in a last-ditch effort to clinch a deal.

The U.S. chipmaker is part of a consortium led by a Japanese government-backed fund and the group will present the new offer of 2 trillion yen ($18 billion) or more, the source said.

The news helped Toshiba's shares climb 9 percent on Monday. The stock is still down 26 percent from levels in late December, before it flagged big losses at its Westinghouse unit.

The laptops-to-nuclear conglomerate aims to name a winner at a board meeting on June 15. Tokyo, however, has been asking Toshiba to postpone the decision as the government-led consortium has yet to finalize its proposal.

Some sources have said that the state-backed fund, the Innovation Network Corp of Japan, is also exploring a potential consortium with Bain Capital, though it is unclear what other firms would also be members of that group.

Western Digital has been seen by some sources as crucial to a successful deal, as it jointly operates a key flash-memory chip plant with Toshiba in western Japan.

But Western Digital and Toshiba have been at loggerheads over the auction. Western Digital is pursuing an international arbitration claim that Toshiba has breached joint-venture contracts by entertaining outside bids.

Toshiba has favored a separate bid from U.S. chipmaker Broadcom Ltd, which has partnered with U.S. private equity firm Silver Lake to offer 2.2 trillion yen, people familiar with the matter have told Reuters.

By: DocMemory
Copyright 2017 CST, Inc. All Rights Reserved

Email ArticlePrinter Format PreviousNext
Latest Industry News
China regulators to probe Toshiba's chip unit sales on antitrust12/15/2017
Applications to drive data center server requirements in 201812/15/2017
Big Data intellegence to help IC design12/15/2017
Nvidia AI chip goes into Komatsu construction automation machine12/15/2017
China's Tsinghua Unigroup to get help from Lite-on to produce SSD12/14/2017
Apple invested in Finisar, an image recognition chip provider12/14/2017
Manufacturing IoT to realize its power in 201812/14/2017
German regulators to find out how amart TV manufacturers deal with the data12/14/2017
Alliance Memory specialize in hard-to-find memory ICs12/13/2017
Toshiba offers JEDEC USF-2 compliant embedded NAND12/13/2017

CST Inc. Memory Tester DDR Tester
Copyright © 1994 - 2017 CST, Inc. All Rights Reserved